IG4 and Petrobras Confirm Co-Ownership of Braskem After April Deal Completion

• IG4's investment fund Shine will hold 50.1% of Braskem's voting capital, while Petrobras retains 47% of voting rights
• Petrobras CEO Magda Chambriard will serve as Braskem's chair under the new governance structure
• The new ownership aims to address Braskem's operational challenges, including tight profit margins and significant liabilities tied to salt mining activities in northeastern Brazil

Summary:

IG4 Capital and Petrobras have officially become co-controllers of Brazilian petrochemical firm Braskem following the completion of a deal in April, announced June 3. The transaction restructures ownership of one of Brazil's largest chemical companies.

Key Ownership Details:

• IG4 Capital, through its investment fund Shine, now holds 50.1% of Braskem's voting capital
• Petrobras maintains 47% of voting capital
• Braskem will hold treasury shares (percentage not specified)

Governance Structure:

Petrobras CEO Magda Chambriard will serve as Braskem's chair, determined through a prior selection process.

Market Context:

This deal concludes a prolonged divestment effort by Novonor (formerly Odebrecht), which had made several unsuccessful attempts to sell its stake in the petrochemical company. The ownership change represents a significant shift in control for the Brazilian chemicals sector.

Company Outlook:

The new governance structure is viewed as a potential turning point for Braskem, which has faced operational challenges including compressed profit margins and significant liabilities related to salt mining activities in northeastern Brazil. The combination of private equity expertise from IG4 and Petrobras's industry position may provide strategic direction to address these ongoing issues.

The transaction marks a notable development in Brazil's petrochemical industry, bringing together state-owned and private capital to manage one of Latin America's largest chemical producers. Investors will be watching whether the new ownership can successfully navigate Braskem's operational headwinds and improve financial performance.